In addition to taking a toll on your mental and emotional well-being, divorce also has the potential to wreak havoc on your finances. Illinois residents who go through the dissolution of their marriages must figure out how to pay their bills based on a single income. Additionally, if your credit score was already lower than you would like it to be before the divorce, improving it is difficult, but it’s also possible if you follow these steps.
Review your credit report
Many people assume that they should avoid requesting a copy of the credit report because doing so lowers their score. However, the impact on your credit score is minimal, and they provide the information you need. Request your Equifax, Experian, and TransUnion credit reports from a website that lets you do so for free.
Once you have your credit reports, check them thoroughly for any errors. One of the quickest methods of boosting your credit score involves getting errors off your report.
Dealing with joint debt
Divorce courts in Illinois do not split debt on a 50/50 basis during a divorce. Instead, they look at each partner’s financial capabilities before deciding which partner pays what. Ideally, you can work with your ex to pay off any joint debt, also called community debt, first, which will allow both of you to embrace a fresh financial start.
Pay everything on time
FICO credit score, the most commonly used type of credit score, ranks payment history as the most critical factor for your score. Ensure that every payment bearing your name gets paid on time each month. Late payments stay on your account for seven years, so paying on time is crucial.
The financial impact of divorce can be intimidating, but you can get through it. Making sound financial decisions in the future ensures that you’re financially stable as you enter the next chapter of your life.